An Overview of Personal Loans

With the economy in such dire straits, many people are looking to different types of loans to take care of their bills while searching for second jobs. Personal loans are loans made directly to the borrower from a bank or lending house. Covering everything from medical bills to credit cards to student loans, these loans are helping people get what they need, when they need it. While there are many different types of personal loans, the can all be categorized as one of two different types: secured and unsecured. Which type of loan you get is dependent on what you will be using the money for. Some loans are available in both secured and unsecured options, while others are only found as one or the other.

Secured personal loans are provided by specific lenders, and have their repayment secured by a physical item. This is how they get their classification. The two most common types of secured loans are home mortgages and car loans. The loans are made specifically for a single purchase. This purchase is repaid in set amounts every month over the length of the loan. If payments are ceased, the lender repossesses the item – the car or the house – in lieu of payment. In contrast, Unsecured Personal Loans are the more common and the more recognizable. Unsecured loans cover a vast majority of ground, from store lines of credit to student loans to medical bills. Once these loans are issued, they can be used for a range of items and services. In addition, many unsecured loans have variable interest rates that can change monthly or annually.

For people who need extra money to pay for a car or a college education, personal loans are available to help fund their needs lenders are available for all credit situations.

3 Smart Ways to Use Credit Cards to Help Offset Wedding Costs

This might sound like the worst idea, but sometimes putting some wedding costs on a credit card can actually make good financial sense. You just need to be careful with how you use it.

Most people think of credit cards as a slippery slope when it comes to big purchases, with interest rates and fees adding up to put you in debt. The problem is, most people dont realize that if they pay the balance of their credit card off every month on time, they wont be hit with those interest rates or fees.

This works perfectly for wedding spending. If you already have the money to pay for the wedding, using a credit card for the rewards can have huge benefits if you plan to pay off the balance...

Fed study finds that ATM, debit might be safer than credit cards

There is good news for banks and credit unions issuing PIN debit cards for use with purchases and ATM transactions. According to a revised study from the Federal Reserve, The 2013 Federal Reserve Payments Study, PIN debit and ATM transactions might be safer than those made via credit cards or signature debit:

Among general-purpose cards, single-message (or PIN) debit card transactions (including both purchases and ATM cash withdrawals) in 2012 had the lowest fraud rates by both number and value, the study authors said.

There were 3.92 unauthorized transactions per 10,000 transactions on card-present credit cards and 3.07 on card-present signature debit. In comparison, the rate...

Wells Fargo eases standards for jumbo loans

Wells Fargo has relaxed its standards for loans for some high-priced homes as the largest US mortgage lender tries to combat an industry-wide drop in mortgage volumes.

The bank has eased its lending standards on mortgages it acquires from other banks, said spokesman Tom Goyda, for jumbo loans that are too large to receive a guarantee from government-backed mortgage companies.

Read More Refinances drive meager mortgage volume

In late July, the San Francisco-based bank lowered the minimum credit score on these fixed-rate jumbo mortgages to 700 from 720, Goyda said. Credit scores...

Assumable mortgages hold hidden value

Recently there has been a significant amount of coverage in various media concerning the declining affordability of housing. Prices have begun to rise and so have interest rates. With higher interest rates come larger mortgage payments and smaller qualified loan amounts for those on fixed salaries. But with assumable mortgages, a buyer can keep a sellers existing lower interest rate and payment, and with roughly twice the density of assumable mortgages as national averages many shore area towns have a large stock of homes that grow in desirability even as interest rates climb towards historical norms.

Mortgages insured by the Federal Housing Administration (FHA) and those guaranteed...

FICO’s New Credit Score Formula Helps Many, Hurts Some

A new version of FICOs credit score formula will raise the scores of people with medical debts, or who paid off other debts in collection.

But people with unpaid debts on their record that arent related to health care would see their scores fall, making it harder for them to get a personal loan or credit card, or raising the interest rates theyll have to pay, FICO said.

The changes potentially affect tens of millions of people -- but dont expect big changes in your credit right away. The score is expected to be available to lenders around the end of this year. And lenders typically take months to try out new scoring formulas on their loan portfolios, to see how accurately the new scores...

Newton crime: Woman’s wallet stolen, credit cards used

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New FICO criteria could help borrowers

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Although the changes will affect FICO scores, they wont remove any unpaid debts from a credit report.

Lenders could still use the items as a reason to deny a loan application or charge more in fees or interest.

Credit unions will need time to study the new FICO criteria but are likely to adopt them quickly, said Arnold Ramirez, a consultant for the California and Nevada Credit Union Leagues. He said a consumer who pays off a debt that went to collection years ago would be regarded favorably.

Credit unions were created to help people of modest means, Ramirez said. We want to help people who may have had problems but are now putting themselves back in good financial...

Why Banks Don’t Stop Savvy Travelers Who Flip Credit Cards

Tom McArdle received 25,000 American Airlines miles after getting his first credit card about a quarter of a century ago. A year later, he closed the account and applied for a new card in his wife's name. Over the following two years, he did the same with United Airlines cards.

"Then it occurred to me: Why do I need to alternate?" says the 47-year-old resident of Ossining, New York, the home of the prison best known as Sing Sing. McArdle and his wife Heather started getting new airline credit cards every year, turning to Delta in their next round.

Each year, they spend the minimum amount required to earn the bonus miles, pay the bills on time, and then put away the cards. He closes...

Court dates set for trio nabbed with fake credit cards at Bazetta WalMart

YOUNGSTOWN, Ohio -

Hearings are scheduled in federal court for three men accused of using phony credit cards at the Elm Road WalMart.

Charges of access device fraud and conspiracy have been filed in US District Court against 22-year-old Mohammed Kamal-Parvez, 35-year-old Fazly Azzam, and 33-year-old Jabal Shaha.

The three were arrested at the Elm Road WalMart in Bazetta Township after they allegedly made several trips through the checkout line using credit cards bearing fraudulent numbers.

According to an affidavit filed by Homeland Security Special Agent Mark Bodo, Bazetta Police and the Secret Service recovered more than 100 credit cards from the three...

5 Things You Won’t Believe Hurt Your Credit Score

By Jonathan Roisman, NextAdvisor.com

Deciphering your credit score can be difficult, especially if you dont know all the ways you can be hurting it. Your credit is not only attached to your credit card use, but with many everyday financial activities. Here are five things that can hurt your credit, and ways to prevent them from happening to you.

1. Closing a Credit Card Account

The act of closing a credit card account doesnt hurt your score in and of itself. What it can do, however, is lower your credit utilization ratio, which determines about 30 percent of your FICO score, according to FICO. Lets say, for instance, you have two credit cards, both of which have a $5,000...

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